Written by The Tennessee Alcoholic Beverage Commission has summarized some of the changes affecting hemp industry members resulting from this year’s legislative session. Industry members should also be mindful and educated of the restrictive changes going into effect on July 1st of this year.
TENNESSEE ALCOHOLIC BEVERAGE COMMISSION | LEGISLATIVE UPDATE
Recreational Nitrous Oxide Prohibited in Tennessee
Beginning July 1, 2026, it is a crime to sell Nitrous Oxide for recreational use in Tennessee.
You’ve probably seen these products in various stores around the state, sometimes known as Galaxy Gas, ExoticWhip, FastGas, and Whip-it!
Retailers who are caught selling Nitrous Oxide after July 1, 2026, can be fined $2,500 for a first offense and $5,000 for a second offense. Retailers holding a TABC license or a local beer permit will have their license revoked upon a second offense.
Kratom Prohibited in Tennessee
New Laws in 2026
Beginning July 1, 2026, possessing, manufacturing, selling, or delivering Kratom in Tennessee is illegal. Criminal penalties include a Class A misdemeanor for possession and a Class C felony for manufacturing, selling, delivering, or knowingly possessing with the intent to manufacture.
TABC licensees could also receive serious administrative penalties, including fines, license suspensions, or revocation.
Hemp-Derived Cannabinoid Product License Notice
Beginning July 1, 2026, the TABC will have full jurisdiction over all Hemp-Derived Cannabinoid Product (HDCP) manufacturers, wholesalers, and retailers in Tennessee. If you haven’t already applied for a TABC license, please do so immediately. You can apply on our website, tn.gov/abc.
Two Important Reminders Before Offering HDCPs to the Public!
1 All products must be sourced through TABC license holders.Effective July 1, 2026, only TABC licensed retailers may sell HDCPs to consumers. Retailers may only purchase HDCPs from TABC licensed wholesalers that have paid the applicable wholesale tax, and wholesalers may only obtain products from TABC licensed suppliers.
2 All products must comply with Title 57 Chapter 7 Sales of Hemp-Derived Cannabinoid Products. If you are unsure whether a product is compliant, you should evaluate its COA before offering it to the public. Below are a few rules to follow that will guide you along the way.
Common red flags that suggest a product’s COA may not meet Tennessee’s standards, including:
• Test results that indicate a Total THC level above 0.3%
• “Potency-only” reports that skip safety/contaminant testing
• COAs that lack basic laboratory contact details (i.e authorized lab signature, address of the laboratory that conducted testing)
What should be on a COA:
• The laboratory’s name and address as it is registered with the TABC
• Laboratory accreditation information
• A photo and state of the sample received (i.e. final packaging)
• Date the lab received the product for testing/the batch number
• Analytical methods and results for potency, heavy metals, microbiological, pesticides, and residual solvents
• Signature from an authorized laboratory representative
New laws taking effect July 1, 2026, will significantly impact HDCP sales and compliance in Tennessee. Make sure you’re properly licensed and prepared.
Last modified: May 7, 2026
